Illinois Tool Works
ITW · NYSEGeneral Industrial Machinery & Equipment · Fiscal year ends Dec 31
Illinois Tool Works reported revenue of $16B in the fiscal year ended Dec 2025, up 0.9% from the year before. Operating income was $4.2B, an operating margin of 26.3%, and net income was $3.1B. Operating cash flow of $3.1B less capital expenditure of $419M left free cash flow of $2.7B. Net debt was $6.8B.
Last 5 fiscal years
Revenue and net income
Income statement
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | $14.5B | $15.9B | $16.1B | $15.9B | $16B |
| Cost of revenue | $8.5B | $8.1B | $7.9B | $7.6B | $7.6B |
| Gross profit | $6B | $7.8B | $8.2B | $8.3B | $8.5B |
| Research & development | $239M | $269M | $284M | $292M | $302M |
| Operating income | $3.5B | $3.8B | $4B | $4.3B | $4.2B |
| Interest expense | $202M | $203M | $266M | $283M | $292M |
| Pre-tax income | $3.3B | $3.8B | $3.8B | – | – |
| Income tax | $632M | $808M | $866M | $934M | $900M |
| Net income | $2.7B | $3B | $3B | $3.5B | $3.1B |
| Diluted EPS | 8.51 | 9.77 | 9.74 | 11.71 | 10.49 |
| Diluted shares | 316M | 311M | 304M | 298M | 292M |
Balance sheet
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | $1.5B | $708M | $1.1B | $948M | $851M |
| Receivables | $2.8B | $3.2B | $3.1B | $3B | $3.2B |
| Inventory | $1.7B | $2.1B | $1.7B | $1.6B | $1.7B |
| Current assets | $6.4B | $6.3B | $6.2B | $5.9B | $6.2B |
| Net PP&E | $1.8B | $1.8B | $2B | $2B | $2.2B |
| Goodwill | $5B | $4.9B | $4.9B | $4.8B | $5.1B |
| Total assets | $16.1B | $15.4B | $15.5B | $15.1B | $16.1B |
| Payables | $585M | $594M | $581M | $519M | $522M |
| Deferred revenue | $394M | $427M | $395M | $360M | $340M |
| Current liabilities | $3.5B | $4.5B | $4.7B | $4.3B | $5.1B |
| Short-term debt | $568M | $535M | $1.4B | $777M | $999M |
| Long-term debt | $6.9B | $6.2B | $6.3B | $6.3B | $6.7B |
| Shareholders' equity | $3.6B | $3.1B | $3B | $3.3B | $3.2B |
Cash flow
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | $2.6B | $2.3B | $3.5B | $3.3B | $3.1B |
| Capital expenditure | $296M | $412M | $455M | $437M | $419M |
| Free cash flow | $2.3B | $1.9B | $3.1B | $2.8B | $2.7B |
| Depreciation & amortisation | $277M | $276M | $282M | $301M | $317M |
| Stock-based compensation | $53M | $63M | $69M | $61M | $69M |
| Acquisitions | $731M | $2M | $0 | $115M | $119M |
| Share buybacks | $1B | $1.8B | $1.5B | $1.5B | $1.5B |
| Dividends paid | $1.5B | $1.5B | $1.6B | $1.7B | $1.8B |
| Dividend per share | 4.72 | 5.06 | 5.42 | 5.80 | 6.22 |
Key ratios
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 10.2% | 1.1% | −1.3% | 0.9% |
| Operating income growth (YoY) | – | 9.0% | 6.6% | 5.5% | −1.1% |
| EPS growth (YoY) | – | 14.8% | −0.3% | 20.2% | −10.4% |
| Gross margin | 41.3% | 48.9% | 50.7% | 52.2% | 52.9% |
| Operating margin | 24.1% | 23.8% | 25.1% | 26.8% | 26.3% |
| Net margin | 18.6% | 19.0% | 18.4% | 21.9% | 19.1% |
| Return on equityBlank when equity is negative | 74.3% | 98.2% | 98.1% | 105.2% | 95.0% |
| ROCEEBIT ÷ (assets − current liabilities) | 27.6% | 34.6% | 37.3% | 39.6% | 38.3% |
| Free cash flow margin | 15.6% | 12.2% | 19.1% | 17.9% | 16.9% |
| Cash conversion (CFO ÷ net income) | 0.95x | 0.77x | 1.20x | 0.94x | 1.02x |
| Receivable days | 72 | 73 | 71 | 69 | 73 |
| Inventory days | 73 | 92 | 78 | 77 | 80 |
| Payable days | 25 | 27 | 27 | 25 | 25 |
| Interest cover | 17.2x | 18.7x | 15.2x | 15.1x | 14.4x |
| Debt ÷ equity | 2.06x | 2.17x | 2.56x | 2.14x | 2.38x |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | $6B | $6B | $6.6B | $6.1B | $6.8B |
| Current ratio | 1.84x | 1.41x | 1.33x | 1.36x | 1.21x |
Recent filings
More in General Industrial Machinery & Equipment
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.